Income Tax Return deadline tomorrow: Have you filed your income tax return (ITR) for the financial year 2021-22 or assessment year 2022-23? If not hurry, else be ready to pay the fine. However, if you miss the July 31 deadline, you can still file the return by December 31, 2022. Now the deadline is July 31, 2022 (tomorrow).
Not just a late fee, but the missing deadline will also have some other financial consequences. Apart from the late fee charges missing deadlines have several other implications. If you miss the deadline you will be required to pay interest on the late payment of taxes.
The late fee for the taxpayers whose annual income is up to ₹ 5 lakh is ₹1,000. If your annual income is more than ₹ 5 lakh the late fine is ₹ 5,000. However, if your gross total income does not exceed the basic exemption limit, you will not be liable to pay a penalty for the late filing.
If you file the return before the due date you can just deposit the outstanding tax. However, if you miss the deadline, you will be required to deposit the outstanding tax along with the interest, retrospectively from July 31. If the outstanding dues are paid after the 5th of any month, the interest of the full month will have to be paid at a rate of 1 per cent per month.
The basic exemption limit depends on the income tax regime you choose. Under the old income tax regime, the basic tax exemption limit stands at ₹ 2.5 lakh for taxpayers below 60 years of age. For people between 60 and 80 years of age, the basic exemption limit is fixed at ₹ 3 lakh. For people above 80 years of age, the exemption limit stands at ₹ 5 lakh.
Under the new concessional income tax regime, the basic tax exemption limit stands at ₹ 2.5 lakh, irrespective of the age of the taxpayers.
Notice for mismatch
As per the Income Tax law, business loss (other than speculative business) can be set off against any head of income except income from salary. Any unadjusted loss can be carried forward for eight financial years immediately succeeding the current financial year and set off against any business income, as prescribed. For example, business losses incurred in the financial year 2020-21 can be set off against business income in the financial year 2021-22 and subsequent years. You may receive notice from the Income Tax Department for not filing or mismatch.
Gross total income refers to the total income before taking into account the deductions under sections 80C to 80U of the Income Tax Act.
